In fact, several markets have even recently broken down below the pricing level seen in the year 2000 (more on this in a later post).

Combined, all of this weakness has worked to put downward pressure on the 25 market composite index, thwarting any chances for annual appreciation and bringing ever nearer thespecter of a new post-panic low for prices.

Although the government-sponsored bounce worked breathe life into residential real estate, a feat that will be likely repeated as we draw closer to the second tax creditexpiration, the effects were essentially temporary.

What we are seeing today is an overarching declining trend even despite the massive government sponsored stimulus (tax credit, quantitatively eased interest rates, foreclosuremitigation, etc.).

Many markets, particularly those on the east-coast, are still very vulnerable to price deflation as their current levels are not borne out by long term historic trends.